Apple shares crack $300 en-route to new all-time high
Apple stock rose roughly 1% in pre-marketed trading Wednesday to a new all-time high, surpassing the $300 milestone for the first time in the company's history.
Shares of the Mac and iPhone maker have been on a tear in recent weeks, rising more than 25% since late August when the stock sat at just over $240.
The Cupertino-based company became the world's second largest corporation in perceived market value late last month after shares hit $290, boosting its market cap to $265.8 billion, ahead of PetroChina's $265.5 billion.
Wednesday's early gains have since pushed the company's cap north of $275 billion, placing it roughly $55 billion behind Exxon-Mobil, the largest company in the world, which was valued at $329.44 billion when the markets closed Tuesday.
Despite the surge, financial experts say the company isn't showing any signs of slowing down. A poll by Thompson / First Call of financial institutions who offer coverage of Apple reveals the mean price target on its shares currently sits at $350, with one firm placing a target on the gadget maker as high as $430.
Consensus expectations are that shares will continue to appreciate in the short term, especially as Apple prepares to report results from its fourth fiscal quarter of 2010 next Monday, which will include the first full quarter of iPhone 4 sales.
On average, analysts expect the company to report per-share earnings north of $4.00 for the three-month period ending September on revenues of approximately $18.76 billion.
Recent market research data also indicates that Apple continues to hit on all cylinders, demonstrating strength in all of its core business segments as the lucrative holiday shopping season rapidly approaches.
In particular, the company is expected to see a boost from its fledgeling tablet business, with one analyst estimating that sales of iPads are already contributing more than $3 billion in revenue per quarter after being on the market just six months.
For a detailed look inside Apple's fundamentals and where the company's share price may be heading, please see AppleInsider's two-part series Apple $400:
Apple $400: A look at Apple?s fundamentals, Part I
Apple $400: A look at Apple's fundamentals, Part II
Shares of the Mac and iPhone maker have been on a tear in recent weeks, rising more than 25% since late August when the stock sat at just over $240.
The Cupertino-based company became the world's second largest corporation in perceived market value late last month after shares hit $290, boosting its market cap to $265.8 billion, ahead of PetroChina's $265.5 billion.
Wednesday's early gains have since pushed the company's cap north of $275 billion, placing it roughly $55 billion behind Exxon-Mobil, the largest company in the world, which was valued at $329.44 billion when the markets closed Tuesday.
Despite the surge, financial experts say the company isn't showing any signs of slowing down. A poll by Thompson / First Call of financial institutions who offer coverage of Apple reveals the mean price target on its shares currently sits at $350, with one firm placing a target on the gadget maker as high as $430.
Consensus expectations are that shares will continue to appreciate in the short term, especially as Apple prepares to report results from its fourth fiscal quarter of 2010 next Monday, which will include the first full quarter of iPhone 4 sales.
On average, analysts expect the company to report per-share earnings north of $4.00 for the three-month period ending September on revenues of approximately $18.76 billion.
Recent market research data also indicates that Apple continues to hit on all cylinders, demonstrating strength in all of its core business segments as the lucrative holiday shopping season rapidly approaches.
In particular, the company is expected to see a boost from its fledgeling tablet business, with one analyst estimating that sales of iPads are already contributing more than $3 billion in revenue per quarter after being on the market just six months.
For a detailed look inside Apple's fundamentals and where the company's share price may be heading, please see AppleInsider's two-part series Apple $400:
Apple $400: A look at Apple?s fundamentals, Part I
Apple $400: A look at Apple's fundamentals, Part II
Comments
- Jasen.
Oh, wait....
From Fortune.CNN.com:
Unaffiliated Analysts\t Revenue\tEPS
Robert Paul Leitao, Apple Finance Board\t21.49\t4.70
Nicolae Mihalache, Traderhood\t 20.95\t4.98
Daniel Tello, Deagol's AAPL Model\t 20.56\t4.73
Horace Dediu, Asymco\t 20.50\t5.00
Alexis Cabot, Apple Finance Board\t 20.41\t4.76
Turley Muller, Financial Alchemist\t 20.31\t4.61
Jeff Fosberg, Apple Finance Board\t 20.01\t4.79
Dennis Hildebrand, Apple's Gold\t 19.53\t4.40
Andy Zaky, Bullish Cross\t 19.11\t4.45
If Apple gets anywhere close to $5.00 EPS, we should see a good boost...
When are we going to get a stock split???
Why do you want a stock split? It won't change anything.
Why do you want a stock split? It won't change anything.
If stock splits do nothing then why do they exist in the first place?
My brother asked about the stock a few years ago and I told him to buy.
He did at $75. Then he sold it all at $190. Not bad for a year, but an extra $110 per share for keeping it another year would have been better.
I still have my shares that I bought at $50...
Go Apple!
Why do you want a stock split? It won't change anything.
Why is this so often stated as if it's clever to point out there share value remains the same? People ask this question because it is known that it boosts sales of stocks as they are perceived to be at a more affordable level AAPL has split in the past it will no doubt split again in the future.
When are we going to get a stock split???
The price per stock is arbitrary, so a stock split is as meaningless as the fact that it "broke $300" for the first time in the company's history. Apple could have done a 1-to-100 reverse split ten years ago and had a stock price in the stratosphere. Who cares?
The interesting thing is their total valuation continues to climb and is STILL seen as undervalued by most analysts.
When are we going to get a stock split???
I have suspected for a while that Google has set a precedent in allowing the pps to rise high without splitting and it has become a badge of honor in high tech companies. I may be totally wrong but it just seems that way to me. I feel far more people would buy AAPL if it were split. Think of all those high school kids with $100 to invest after Christmas for example.
If stock splits do nothing then why do they exist in the first place?
They allow broader ownership of a stock - if every share cost $10,000 no one could buy it. But splitting a stock from $300 to $150 only means an average person will buy 10 instead of 5 shares. No difference.
Why is this so often stated as if it's clever to point out there share value remains the same? People ask this question because it is known that it boosts sales of stocks as they are perceived to be at a more affordable level AAPL has split in the past it will no doubt split again in the future.
It is so often stated because inevitably someone else will come and say "it is known that it boosts sales of stocks" which is total BS.
I have suspected for a while that Google has set a precedent in allowing the pps to rise high without splitting and it has become a badge of honor in high tech companies. I may be totally wrong but it just seems that way to me. I feel far more people would buy AAPL if it were split. Think of all those high school kids with $100 to invest after Christmas for example.
You do realize that for every share purchased, that share is also sold, right? So one person buying a share doesn't increase the amount of shares held by people.
The price per stock is arbitrary, so a stock split is as meaningless as the fact that it "broke $300" for the first time in the company's history. Apple could have done a 1-to-100 reverse split ten years ago and had a stock price in the stratosphere. Who cares?
The interesting thing is their total valuation continues to climb and is STILL seen as undervalued by most analysts.
Last Stock Split. 02/28/05
I agree it is undervalued. Way undervalued!
If stock splits do nothing then why do they exist in the first place?
Some companies like to keep their share prices within a certain price range and will split the stock to so. They will also do a reverse split and combine shares to raise the share price. Companies like at&t have traditionally kept their share prices within a range that makes it possible for the small investor to buy in. A lot of trading houses won't take an order for less than 100 shares so you'd need $30,000 to buy into Apple right now. On the other end of the spectrum you have Berkshire/Hathaway trading today at $125,000.00 per share! So there are many reason for a company to split or combine shares, or not.